Our Services

Get 15% Discount on your First Order

Discuss the pattern of absolute advantages across the two countries.

May 10, 2023

2: (10 points) Now consider the following (I increase foreign productivity in manu):

MANUFACTURE

PRODUCTIVITY (output per worker)

AGRICULTURE

PRODUCTIVITY (output per worker)

LABOUR ENDOWMENT

HOME

100

FOREIGN

100

a)
Show how Foreign’s PPF has changed.

b)
Identify each country’s opportunity costs in each sector. Interpret.

c)
Who has the comparative advantage in Manufactures? Agriculture? Explain.

d)
Show that a reallocation of resources within each country can raise world output. Explain the idea behind it.

e)
What are autarchy wages and manufacturing prices in each country? Show and explain how you get your result. (Set P_A = 1)

f)
Using prices as a guide, who will export what? Explain.

g)
What range must manufacturing prices be in to get free trade equilibrium? Explain.

h)
Show that real wages in each country will rise in the free trade equilibrium.

3: (10 points) Use your results from (1) and (2) in the following.

a.
Discuss the pattern of absolute advantages across the two countries.

b.
Is absolute advantage necessary for gains from trade?

c.
What can absolute advantage tell us the direction of trade? Discuss.

d.
Explain why real wages rise in each country when we move to free trade even if one country has an absolute disadvantage in both sectors (eg Question 1).

4.
(10 points)

a.
Does a rise in Foreign manufacturing productivity from 15 to 25 hurt Home? Explain fully. That is, from Home’s perspective, is the free trade outcome in (1) better than the free trade outcome in (2). Hint: what is happening to world prices?

b.
Does a rise in Foreign manufacturing productivity from 15 to 25 hurt Foreign? Show/discuss.

c.
What does this imply about the impact of productivity growth in the developing world on developed nations?

Click here to request for this assignment help

#Discuss #pattern #absolute #advantages #countries

absolute, advantages, countries, Discuss, pattern

Share This Post

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Step 1: Create a family and include family issues such

Step 1: Create a family and include family issues such as domestic and family violence Step 2: Respond to the questions below. What is the appropriate family theory/approach to help the family? Explain why it is a good fit for the family. Identify and explain interventions and techniques to be

Visit the Transforming Data with Intelligence website, Trends in Analysis

Visit the Transforming Data with Intelligence website, Trends in Analysis section by clicking HERE. Explore the many different articles that are available, and select one that is most interesting to you. Then, in a 3-5-page written response in APA format: Summarize the article. (no more than 5 sentences) What

Explain why an increase in sample size will reduce the

Explain why an increase in sample size will reduce the probability of a type II error, but such an increase will not impact the probability of a type I error. Support your reasoning using a scholarly source. Visit the Strayer University Library for help.

This is an application assignment based on what you did

This is an application assignment based on what you did in the previous assignment.Review Tamiya’s transition profile found below this assignment link. You are going to complete your own Home Visit Planning Form as if you were going to visit Tamiya’s family. Based on what her mother said in the

SOC 1: INTRODUCTORY SOCIOLOGY

Required Text: 1. Sociology: The Essentials, 9th edition. Margaret L. Anderson. Cengage Learning. NOTE: You may purchase the digital option available via MindTap at Cengage, access this text with your Cengage Learning subscription or order a loose leaf text Course Description: This course is designed to introduce to the student

Policy analysis begins with a review of current literature. Health

Policy analysis begins with a review of current literature. Health care leaders must understand how and why laws are created. The best way to explore the historical significance and underpinnings of current legislation is to read the literature. Health policy making and legislation are dynamic processes influenced by multiple factors.

Define the word “candor” in both a personal and a

Define the word “candor” in both a personal and a universal way. Argue a point while considering the possible multiple points that conflict it. Extend the definition into the future while basing it on am understanding of the past. Include five (5) appropriate sources (In-text citations and reference page citations

The concepts of power, trust, influence, and politics are critical

The concepts of power, trust, influence, and politics are critical to the study of organizational behavior. Select one of these areas and find two (2) empirical studies, published within the past 10 years, and summarize each article (researcher’s methods and findings), as well as writing a concise analysis, interpretation, and

Program review paper: A description of the drug or alcohol prevention

Resources for identifying programs: https://www.samhsa.gov/ebp-resource-center https://www.blueprintsprograms.org http://adai.washington.edu/ebp/ https://www.ojjdp.gov/mpg/ https://www.cde.state.co.us/healthandwellness/nrepp-substance-abuse-programs-2015-pdf Students will complete a program review paper this semester. Papers should be a minimum of 3 pages and no more than 5 pages (not including references page), Times New Roman, 12 pt font, double-spaced. Detailed syllabus will be provided.

SEU Safe and Healthy Food Questions Nursing Assignment Help

Safe and healthy food is important for the sustainability and living of all humans. However, food can also be contaminated by foodborne pathogens that may cause serious diseases and death. Describe briefly spoilage of meat? What are the factors that cause meat spoilage? How would you inform public to avoid

Environmental Issues in the Marble Industry

Prepare a term paper discussing : (1)history of the issue, (2) what contaminants are present,(3)the implications of the contamination (who is impacted,the hazardsinvolved, routes of exposure), (4) history of the laws/regulationsassociated with the problem, cleanup or pollution (or lack thereof for examplemaybe a lawmaking decisionwas prompted by the problemoccurring),(5) your

Complete a one page summary for each link. APA 7th ed. Citations must be within 5 years.

Select an organization, national or international, that has implemented an

Select an organization, national or international, that has implemented an ERP system. Then, address the following components in your paper: What best practices did the organization use when implementing the ERP? Provide 2-3 specific examples. What did the organization do poorly when implementing the ERP? What changes, as based upon

Determinism

According to the principle of determinism, every event that takes place in the world has a cause. Whether or not the event is snow falling, birds chirping or humans thinking, the determinist asserts that each and every event that occurs in the world has a cause, or series of causes,

discussion Nursing Assignment Help

APA Managing financial risk is an important responsibility of medical managers. Risk management is an important process to keep the finances of all healthcare organizations safe. Discuss the following: 1. What are the financial risks to healthcare organizations? 2. What role do the accountants play in risk management? 3. Why is it important to hire

tu vs usted Discuss when you would use the tú form and when you would use the usted form. Give examples of who you would be talking to or what kind of

tu vs usted Discuss when you would use the tú form and when you would use the usted form. Give examples of who you would be talking to or what kind of situations you would use either of them. To get full credit you must create one original post and also

Industrialization

Introduction Industrialization will enhance your knowledge of the socio-economic infrastructure that began to emerge after the War of 1812. The transformation of transportation, communication, and mechanization made life in America easier. America was becoming a leading competitor in the global community while building an internal cohesiveness between the North, South,

Urban Problems in Puerto Rico, Part 2 In this unit,

Urban Problems in Puerto Rico, Part 2 In this unit, you will complete your Puerto Rico research paper. You will add a minimum of two additional pages to the first half of the paper that was submitted in Unit V. The final research paper draft you complete in this unit